Ethiopia and Kenya Forge Ahead with a Strategic Framework to Enhance the LAPSSET Corridor

Ethiopia and Kenya Forge Ahead with a Strategic Framework to Enhance the LAPSSET Corridor

Ethiopia and Kenya are moving forward with a strategic framework to enhance the Lamu sections of the Lamu Port, South Sudan, Ethiopia Transport (LAPSSET) Corridor following the adoption of the pre-feasibility study on the Ethiopia-Mombasa and Ethiopia sections – in September 2023. Led by the LAPSSET Joint Technical Committee and funded by USAID-ERRA, these crucial discussions have yielded an actionable framework outlining 14 pivotal recommendations derived from the LAPSSET Corridor Prefeasibility Diagnostic study to improve the corridor’s efficiency.

Underscoring Ethiopia’s commitment to utilizing the Port of Lamu, plans are already underway for a pilot fertilizer shipment by the end of May 2024. The committee further delineated a series of actions within the framework’s recommendations to ensure smooth transportation, including infrastructure enhancements, tackling Non-Tariff Barriers (NTBs) and insecurity, and conducting corridor user sensitization workshops. Moreover, efforts to harmonize custom protocols and tariffs with the COMESA protocol are in motion. Given the recent attacks on ships in the Red Sea, the LAPSSET corridor is gaining strategic significance as an alternative trade route for Ethiopia.

Simultaneously, a Joint Ministerial Committee (JMC) meeting between Ethiopia and Kenya has resolved to expedite the implementation of the Simplified Trade Regime (STR) to facilitate formalized, inclusive, and profitable trade for small-scale cross-border traders. With a targeted completion date of May 20, 2024, the resolution includes finalizing discussions on the capital threshold, defining a list of commonly traded goods, and establishing travel frequency guidelines.